"The inflection points are incredibly frustrating for everybody involved," he said. "Chasing certain stocks is not the best thing to do right now."
While volatility in the market is low, investors need to be aware of the headwinds as retail sales continue to decline and oil prices dip.
"People are turning their heads away at the time right before some excitement and before volatility picks up," Borish said. "The wave is picking up in the ocean although it seems relatively calm on the beach."
Determining where the Dow is headed is not as crucial as focusing on the fundamentals of the market.
"Be patient because more money is lost when people anticipate things happening," he said.
Unless there is substantial growth in the next few quarters, another large move is not likely to occur, said Ron McCoy, portfolio manager of LOWS fund on Covestor, the online investing company, and founder of Freedom Capital Advisors in Winter Garden, Fla. A large portion of the run-up since President Donald Trump began his term is the belief that his adminstriatrion could be more business friendly, but it could already be priced in.
"This is a tough market to figure out," he said. "With the Shiller PE Ratio trading close to 30 with a historical average of 16.75 and the price to sales of the S&P 500 trading at 2.08 with a historical average of 1.45, it's really hard to imagine the markets going a lot higher from here. Having done this for over 25 years, I have learned that stranger things can happen."
Many of Trump's policies could already be priced into the market and there is minimal upside to current levels, said Michael Berger, founder of Technical420, a Sarasota, Fla.-based company that conducts research on cannabis stocks.
The biotech and legal cannabis industries appear to be resilient to a potential recession.
"We see the best opportunities in the parts of the market that offer strong growth potential," he said. "We view biotech cannabis stocks like GW Pharmaceuticals (GWPH) and MJ Biopharma (VNNYF) , as well as legal Canadian cannabis retailers like Emblem (EMMBF) and The Green Organic Dutchman as some of the top opportunities of 2017."
Why Markets Can Reach New Highs
Of course, investors must decide the appropriate multiple for earnings growth in determining how much higher the markets can reach, said Yale Bock, a portfolio manager with Covestor, the online investing company, and president of Y H & C Investments in Las Vegas.
The multiples are able to head higher because the S&P 500 trades at a little over 18 times forward earnings and if companies could continue to "bang out record levels of profits, especially on the tech side," he said.
The markets could see the Dow reach 21,500 to 21,800 and the Nasdaq at 6,150 to 6,300, Bock estimates.
The Dow could rise even more and reach 22,000 or 24,000 in the next two years, based on a 9% to 10% per year historical average of the index, positive fundamentals and President Trump's policies, said Jon Ulin, a managing principal of Ulin & Co. Wealth Management in Boca Raton, Fla.
The current bull market still has "room to run" and could reach new highs because of historically low interest rates and the rise of corporate profits, inflation and wages, he said.
Unlike the 2007 credit crisis and large equity overvaluations of 1987 and 2000, this current market lacks any "big-bear market triggering events on the table" for the next year, but investors should be ready for the increased volatility since the current economic cycle is more than half way through, Ulin said.
"Investor sentiment and market fundamentals drive stock prices over time like riding a tandem bicycle," he said. "The madness of the crowd or crowd psychology is less rational overtime than the markets themselves. All the brokers coming back out of the woodwork selling doom and gloom hedging products need to chill out a bit."
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